November 2025 - Israeli Market Trends

Introduction

November 2025 continued the strong momentum in Israeli tech, driven by surging investment in AI-driven ventures and landmark exits. Venture funding remained robust in core areas, such as cybersecurity, AI infrastructure, and deep tech, while global acquirers moved aggressively to secure Israeli startups to bolster their own innovation. A wave of major deals, including an IPO and several half-billion-dollar acquisitions, underscored how AI and cybersecurity dominated the ecosystem. In this report, we analyze the month’s key trends, from mega funding rounds to strategic M&A activity.

Funding Highlights: AI Everywhere, from Security to Infrastructure

Investors poured capital into AI-centric startups across virtually every sector, reflecting AI’s ubiquity as a growth driver. No fewer than five Israeli companies each raised $75M+ rounds in November, all leveraging AI in distinct domains. 

The largest was Armis’s $435M pre IPO round (led by Goldman Sachs) to expand its cybersecurity platform for asset visibility[1]. This raise valued Armis at $6.1B, a leap from $4.5B in August, after the company reportedly turned down acquisition offers up to $5B[2] [3]. Armis plans an IPO by 2027, signaling confidence that an independent path will yield greater returns. Other big fundings underscored AI’s cross-industry momentum: customer service AI startup Wonderful secured $100M to deploy multilingual support agents, and deep tech upstart Majestic Labs raised $90M to tackle the AI “memory wall” with a hardware system that the company claims can deliver up to 1,000× higher effective memory capacity than standard server architectures. Two massive $75M rounds went into cybersecurity: Tenzai (a seed-stage startup simulating autonomous hackers to stress test defenses) and Sweet Security (which protects cloud AI environments by uncovering “Shadow AI” and real attack paths), illustrating how security for the AI era is a top priority for investors. These outsized rounds, including a rare $75M seed, show VCs aggressively backing seasoned teams (e.g., Tenzai’s founders are ex Guardicore) to tackle emerging threats and opportunities at scale.

Midsized rounds (in the $10M-$50M range) also clustered around AI and data infrastructure. For example, Daylight ($33M Series A) is an “AI native” detection and response platform that deploys clever agents to autonomously contain cyber threats in real time. AUI ($20M SAFE) is pioneering a hybrid symbolic generative AI that handles structured tasks (like travel bookings or transactions) far more efficiently than large language models. On the hardware front, RAAAM Memory Technologies ($17.5M Series A), backed by NXP Semiconductors, is developing a novel memory (GCRAM) that provides 50% area reduction and 10× power savings over SRAM, a potential breakthrough to ease AI’s memory bottleneck. Similarly, DualBird ($17M Series A) emerged from stealth with a cloud engine that accelerates big data and AI pipelines by 10 to 100× without any new hardware, promising to slash computing costs for AI workloads.

Notably, many traditionally “nontech” sectors saw AI-driven fundraising as well. In proptech, Venn ($52M Series B) and TULU ($17M Series A extension) are reinventing real estate operations from AI-powered tenant management to IoT-based appliance sharing. In fintech, Chargeflow ($25M Series A) raised capital to scale its AI platform for automated chargeback dispute resolution, achieving 4× industry success rates. Healthcare and biotech are in on the trend too: Popai Health ($11M) is using voice AI to analyze patient phone calls for clinical insights, and Cassidy Bio ($8M) is fusing genomics with machine learning to design safer gene editing therapies. Even the travel and hospitality space is getting an AI boost: Localbird ($7.4M) secured seed funding for its concierge platform, which uses AI to help Airbnb hosts upsell local experiences.

Across all these deals, a unifying theme is that AI is the common denominator. Nearly every startup, whether in cybersecurity, enterprise software, hardware, healthcare, or real estate, pitched an AI-driven advantage or core technology. This reflects a broader strategy in venture funding: backing vertical AI companies that wield the technology as a force multiplier within their domain. The November funding surge, particularly in AI security and infrastructure, suggests that investors are positioning for the next phase of AI adoption. Israeli startups are answering that call with deep expertise, which is why we see such high conviction from VCs (and at increasingly high valuations).

M&As and Exits: Big Exits Validate AI Leadership

If the funding activity signals optimism, November’s exits proved that global players are willing to pay top dollar for Israeli innovation. The month saw a mix of IPO milestones and multiple high-value acquisitions, many centered on AI capabilities. The standout was Navan’s Nasdaq IPO, in which the Israeli-founded travel & expense platform raised $923M at a $6.2B valuation[4] [5]. This marks one of the largest IPOs by an Israeli-founded company in recent years and reinforces a rebound in the public markets. Navan (formerly TripActions) transformed corporate travel with modern, AI-enhanced tools, and its successful listing, within its expected price range, signals renewed investor appetite for high-growth tech offerings. Analysts have hailed the resurgence of tech IPOs and expect a meaningful pickup in activity in the coming quarters[6]. Via this IPO, Navan not only injected liquidity into its backers’ coffers but also set a valuation benchmark that could lift the entire Israeli late-stage ecosystem going forward.

On the M&A front, several half-billion-dollar deals underscore the strategic value of Israeli companies, particularly in marrying AI with traditional industries. In critical infrastructure, NASDAQ-listed Itron agreed to acquire Locusview for $525M in cash, expanding its energy grid management portfolio[7]. Locusview’s Digital Construction Management software has managed over one million utility projects (tens of billions in value) across the US, riding the boom in electricity grid upgrades for AI data centers. Likewise, in public safety, U.S. tech firm Axon (maker of Taser and police body cams) acquired Carbyne for $625M, aiming to unite Carbyne’s AI-powered 911 call platform with Axon’s devices. Carbyne’s cloud software integrates live video, location mapping, and real-time transcription to give dispatchers and responders instant situational awareness[8]. By acquiring it, Axon plans to modernize emergency response with AI, closing the information gap from “dial 911” to on-scene action. These big-ticket deals show that Israeli startups leading in AI-driven infrastructure and safety tech are being folded into global giants, a strong validation of their technology and market traction.

Major strategic acquisitions in AI were a recurring theme. Design software leader Figma paid over $200M for Tel Aviv-based Weavy, an AI creative tools startup barely one year old. This was Figma’s largest acquisition ever and paves the way for a new R&D center in Israel[9] [10]. Weavy’s node-based platform lets creators generate videos and images with AI and professional editing tools, and will bolster Figma’s capabilities in generative media. In the marketing domain, HubSpot acquired Israeli startup XFunnel (for an undisclosed sum) to help brands optimize their visibility in AI-driven search answers. XFunnel specializes in “Answer Engine Optimization,” ensuring a company’s content is the top answer in tools like ChatGPT, a novel marketing need as consumers skip traditional search for AI Q&A. This shows incumbents are keen to incorporate Israeli tech for the coming AI paradigm in search and marketing.

The flurry of acquisitions spanned fintech, security, and even robotics, reflecting the breadth of Israel’s tech leadership. In crypto finance, Paxos bought Fordefi for over $100M to integrate its secure crypto wallet platform for institutions. Fordefi’s solution, which safeguards $120B+ in monthly transaction volume, will strengthen Paxos’s custody and compliance offerings as digital assets go mainstream. Cybersecurity giant McAfee picked up privacy tech startup MineOS (for a reported eight-figure sum) to add an automated data privacy suite to its consumer protection lineup – timely amid surging data regulations. Meanwhile, Ondas Holdings (US) acquired Israel’s Roboteam for $80M, adding tactical unmanned ground vehicles to complement Ondas’s drone platforms. Roboteam’s AI-enabled robots (used for bomb disposal and reconnaissance) will join a unified “robotics-as-a-system” strategy combining air and ground autonomy. This deal continues a trend of US defense firms establishing an Israeli foothold via acquisitions, tapping the country’s renowned robotics talent.

It’s worth noting that several acquirers plan to keep and expand an Israeli R&D presence, turning these buyouts into gateways for long term investment. Figma, as noted, will grow a Tel Aviv hub. Kaltura, a US video platform company, bought local startup eSelf.ai ($27M) specifically to infuse conversational AI avatars into its products, and in doing so, is setting up an AI innovation center in Israel. Similarly, Tulip (US) acquired Israeli data analytics startup Akooda (for a “tens of millions” price) and announced an Israel-based R&D hub to develop AI-driven operational tools for manufacturing. These moves signal that, beyond the immediate product synergies, global companies see Israel as a critical engine for their future AI development.

Finally, smaller acquisitions also carried strategic importance. Sign.mt (Switzerland) acquired Nagish, an Israeli AI accessibility app, to combine their speech-to-text, text-to-speech, and sign language recognition technologies. By uniting efforts, they aim to solve interpreter shortages and enable seamless communication for the deaf/hard of hearing community, a noble example of AI for good, and an exit that will expand Nagish’s impact globally.

Conclusion

In summary, November 2025 underscored Israel’s strength at the intersection of AI and industry. On the funding side, investors doubled down on startups that embed AI into everything, from protecting clouds and coding securely to revolutionizing real estate and healthcare, fueling innovation despite global economic headwinds. Simultaneously, record-sized exits and multiple high acquisitions demonstrated strong confidence in the long term value of Israeli tech. The common thread is AI-driven transformation: whether it’s a $6B travel tech IPO or a $525M energy infrastructure sale, the biggest deals hinged on applying advanced technology (AI, data, automation) to huge markets. The convergence of massive VC bets and aggressive buyouts this month suggests a vibrant, maturing ecosystem where top companies have multiple paths to scale, be it through public offerings or integration into global giants. We expect these trends to carry into the coming months, with AI-centric innovation, across both core AI infrastructure and vertical AI applications, remaining the focal point of investment and acquisition interest. It’s an exciting time to be involved, as Israeli tech sets the pace in the global race for AI-enabled solutions across all sectors.

[1] [2] [3] Armis raises $435M pre-IPO round at $6.1B valuation after refusing M&A offers | TechCrunch

https://techcrunch.com/2025/11/05/armis-raises-435m-pre-ipo-round-at-6-1b-valuation-after-refusing-ma-offers/

[4] [5] [6] Travel tech firm Navan's IPO raises about $923M | Reuters

https://www.reuters.com/business/travel-tech-firm-navans-ipo-raises-about-923-million-2025-10-30/

[7] Itron buys Israel’s Locusview for $525M as AI sparks energy-infrastructure boom | Ctech

https://www.calcalistech.com/ctechnews/article/hyqe8iugwl

[8] US public safety firm buys Israel's AI emergency response startup Carbyne for $625m | The Times of Israel

https://www.timesofisrael.com/us-public-safety-firm-buys-israels-ai-emergency-response-startup-carbyne-for-625m/

[9] [10] Figma acquires one-year-old Israeli AI startup Weavy for over $200M | Ctech

https://www.calcalistech.com/ctechnews/article/byyrqlbjwg

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